Ennoconn Corporation (6414 TT, NT$319.50) - Order backlog of NT$215bn, profit improvement expected in 2Q26

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Ennoconn Corporation (6414 TT, NT$319.50) - Order backlog of NT$215bn, profit improvement expected in 2Q26

Taiwan Equity | Technology

Company Snapshot

Order backlog exceeds NT$215bn, stable growth expected in FY26 operations

Ennoconn’s current order backlog has further expanded to NT$215bn (previous quarter:

NT$190bn). The management expects 2H26 performance to surpass 1H26, with overall

FY26 sales and profit showing steady growth. The three major business groups have

growth momentum: 1) Industrial IoT, with stable-to-rising demand in rail transportation,

aerospace and defense, and a recovery in smart manufacturing/retail; NCR Voyix

hardware ODM orders have officially started shipment, and the management estimates

NCR orders will contribute NT$10bn in FY26; 2) Smart Software & Solutions, with smart

city, smart healthcare, and smart energy/building applications being implemented, and

steady growth in Kontron's software solutions; and 3) Smart Factory & Facility, with

TSMC’s US P2 and P3 new plant projects underway, and subsequent accelerated revenue

recognition from facility engineering for Kaohsiung P3 and P4. 1H26 sales exceeded

Fubon’s expectations, leading to an upward revision of Ennoconn’s FY26 sales forecast to

NT$171.5bn, up 20.6% YoY, with a 1H:2H sales ratio at 45:55. With ongoing cost pass-

through, scale expansion, and product mix optimization, OpM is expected to improve over

last year. Based on the latest share capital, FY26 EPS is estimated at NT$24.7.

How are we different?

We are positive on Ennoconn’s phased transformation benefits gradually emerging, and

Marketech’s market cap expansion alongside TSMC’s plant construction, which together

drive Ennoconn’s price higher. We value the stock at the high-end of its historical range,

based on 15x PE.